The new boutique will be considerably smaller than Ungaro's Madison Avenue location, which recently shuttered (and is rumored to be replaced by Michael Kors), and the firm has restructured to save costs in the face of lagging business.

With a slew of short-lived designers at its helm in recent years, Ungaro's president Mounir Moufarrige took a misguided risk in bringing on Lindsay Lohan for the spring 2010 collection. The disastrous line sent the fashion industry into a tizzy and Lohan was canned -- but not before Moufarrige was also let go. Of course, it's best of luck to Ungaro, but we'll just have to wait and see how they weather out the storm.